Aao13, Home Buyer in Morganville, NJ

Fair market value. How to determine?

Asked by Aao13, Morganville, NJ Sat Aug 8, 2009

What would be a fair market value be on a house with 3 bed 2.5 bath condo be in Morganvielle? the asking price is 320K but similar and exactly the same sq. footage condos have been sold for 280K to 295K from March to June timeframe of 2009.

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Christine Markow’s answer
Aao13,

As mentioned working with a real estate professional is recommended to get accurate comparables and values to help determine market value. Fair market value typically refers to what buyers are willing and able to pay - there should be appropriate adjustments made in comparision to that particular property based on the condition of the property as well.

Appraised value is important too and will play a role in you obtaining the necessary financing. You need to note whether some of the comps were sold "as is" and/or were out-dated compared to the home you're interested in.

Unfortunately, we don't know all the circumstances. Since you have seen this home - I'm assuming you have already been pre-qualified or approved for this price range. I would suggest offering the seller what you feel comfortable paying for the property - if the seller feels that's too low, they'll counter or just reject the offer. Your perceived value of the property should be considered too!

Christine Markow
ERA Statewide Realty
0 votes Thank Flag Link Sun Aug 9, 2009
BEST ANSWER
Hi Aao13, a good pricing analysis is what you need - drawing on the facts of the market, ie, comparable sales from 12 months ago, 6 months ago and under contract, the analysis extrapolates the market trend and applies it to active comparables to arrive at a market value range. It is a great tool so long as the input is sound.

An agent that knows her/his stuff will be a great asset to you.

Good luck!
Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Aug 8, 2009
Hi Aao13,

The way to arrive at the fair market value of a home is to do a study of the recently sold units and under contract units that are similar to the home in question. Features such as amounts of beds, baths, style, square footage and so on should be similar.

I would not suggest using the condos that are selling to compare against a home sale. I believe you are referring to the condos in Mill Ponds and Point de Jardin. Including them in your consideration will not give you an accurate price.

Best

Artyom and Natasha
Rogov Team
Re/max Central
Art-(908)216-5066
Natasha-(908)839-5995
rogovteam@gmail.com
0 votes Thank Flag Link Sun Aug 9, 2009
Fair market value is based on comparable sales. This would require a study of the what's gone on in the recent past. Keep in mind that some of the sales you might be seeing could be distress sales or foreclosures. While these sales do affect market value, they also need to be adjusted to reflect their condition and the risk a buyer has had to endure in order to get to closing!

Home prices are just starting to level off and in some areas prices are starting to rise a bit. The only way to truly determine fair value is to have a local professional do the analysis.

Good luck!
Web Reference: http://www.JoTheRealtor.com
0 votes Thank Flag Link Sun Aug 9, 2009
If you love it put in an offer of $300,000. Don't waste anyones time.
0 votes Thank Flag Link Sat Aug 8, 2009
Determining the "fair market value" by usng comparisons of single family homes and condos together would not be advisable since they represent different totally different types of homes. Our recommendation is to use only single family homes samples to support single family home inquiries and only condos to support condos.

A local real estate professional will be able to provide you with reliable information to support your needs.

Good luck
0 votes Thank Flag Link Sat Aug 8, 2009
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